SoundHound AI, Inc. (NASDAQ:SOUN) Stock Has Consensus Target Price of $12.75 According to Analysts

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) have received an average rating of “Moderate Buy” from the seven analysts that are presently covering the company, Marketbeat.com reports. One equities research analyst has rated the stock with a sell recommendation, two have assigned a hold recommendation, three have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year price objective among brokerages that have issued a report on the stock in the last year is $12.75.

Several equities analysts recently weighed in on the company. Wall Street Zen lowered SoundHound AI from a “sell” rating to a “strong sell” rating in a research note on Saturday, September 26th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of SoundHound AI in a report on Friday, September 11th. Piper Sandler lowered their price target on SoundHound AI from $7.00 to $6.00 and set a “neutral” rating on the stock in a research report on Tuesday, September 22nd. Finally, DA Davidson dropped their price objective on SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a report on Thursday, August 6th.

Key Headlines Impacting SoundHound AI

Here are the key news stories impacting SoundHound AI this week:

• Positive Sentiment: Enterprise AI and OASYS offer a potential growth catalyst. SoundHound’s enterprise business has become its largest segment, while its OASYS platform for building AI agents could help the company expand beyond its traditional voice-assistant image. However, the key question is whether OASYS has translated into meaningful sales. What Can Make SoundHound AI Stock A Buy?
• Positive Sentiment: Banking and financial-services expansion could broaden demand. SoundHound plans to showcase AI agents at Money20/20 USA 2026, highlighting an effort to win enterprise customers in financial services. SoundHound AI to Showcase AI Agents for Banking and Financial Services
• Neutral Sentiment: Competitive positioning remains a longer-term opportunity. SoundHound’s voice-AI technology is being presented as a possible challenge to Apple’s dominance, but the report does not identify a specific contract or revenue milestone that would immediately change investor expectations. Why SoundHound’s Voice AI Challenge Could Shake Apple’s Dominance
• Neutral Sentiment: Analysts and investors are comparing SoundHound with other AI opportunities. A comparison with Nebius emphasizes SoundHound’s conversational-AI focus and its LivePerson acquisition, but suggests investors must weigh that opportunity against Nebius’s faster-scaling AI infrastructure business. Nebius Group vs. SoundHound AI
• Negative Sentiment: Technical weakness and bearish sentiment are weighing on the shares. SoundHound broke key support and reached its lowest level since November 2024, with the stock down roughly 70% over 12 months. One report described surging short interest, although a separate data item listed zero shares short, indicating conflicting short-interest information. SoundHound Stock Breaks Key Support
• Negative Sentiment: Cash-burn and profitability concerns remain major risks. Commentary questioning whether rapid spending is creating durable competitive advantages adds to investor concerns, particularly while SoundHound continues to report negative earnings and margins. Cash-Burning Stock Commentary

SoundHound AI Stock Performance

SOUN opened at $5.39 on Wednesday. SoundHound AI has a fifty-two week low of $5.36 and a fifty-two week high of $22.17. The company has a fifty day moving average of $6.55 and a two-hundred day moving average of $7.02. The stock has a market capitalization of $2.39 billion, a price-to-earnings ratio of -14.18 and a beta of 2.73.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings data on Wednesday, August 5th. The company reported ($0.02) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.13) by $0.11. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 30.22%. The business had revenue of $61.90 million during the quarter, compared to the consensus estimate of $52.38 million. During the same quarter in the prior year, the firm posted ($0.19) earnings per share. The company’s revenue was up 45.0% compared to the same quarter last year. On average, equities research analysts forecast that SoundHound AI will post -0.32 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Keyvan Mohajer sold 137,290 shares of the stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total transaction of $869,045.70. Following the transaction, the chief executive officer owned 3,684,947 shares in the company, valued at $23,325,714.51. This trade represents a 3.59% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 71,113 shares of the stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total value of $450,145.29. Following the transaction, the chief operating officer owned 2,600,231 shares in the company, valued at $16,459,462.23. This trade represents a 2.66% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 288,758 shares of company stock valued at $1,828,598 over the last ninety days. 8.84% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On SoundHound AI

A number of institutional investors have recently added to or reduced their stakes in the stock. Hilltop Holdings Inc. increased its stake in SoundHound AI by 3.5% during the 1st quarter. Hilltop Holdings Inc. now owns 51,358 shares of the company’s stock worth $353,000 after buying an additional 1,753 shares in the last quarter. Sterling Investment Counsel LLC raised its holdings in shares of SoundHound AI by 10.5% during the first quarter. Sterling Investment Counsel LLC now owns 22,787 shares of the company’s stock valued at $157,000 after acquiring an additional 2,173 shares during the last quarter. Empowered Funds LLC raised its holdings in shares of SoundHound AI by 19.6% during the first quarter. Empowered Funds LLC now owns 13,896 shares of the company’s stock valued at $95,000 after acquiring an additional 2,277 shares during the last quarter. Hollencrest Capital Management lifted its position in shares of SoundHound AI by 197.5% in the first quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock valued at $25,000 after acquiring an additional 2,400 shares in the last quarter. Finally, Keynote Financial Services LLC lifted its position in shares of SoundHound AI by 6.9% in the first quarter. Keynote Financial Services LLC now owns 37,321 shares of the company’s stock valued at $256,000 after acquiring an additional 2,405 shares in the last quarter. Institutional investors and hedge funds own 19.28% of the company’s stock.

About SoundHound AI

SoundHound AI, Inc develops voice artificial intelligence technologies that enable people to interact with products and services using natural language. Its platform is designed to understand conversational speech, answer questions, and support voice-enabled experiences across automotive, restaurant, consumer electronics and other industries.

The company’s offerings include the Houndify voice AI platform, which businesses can use to build customized voice assistants, and SoundHound Chat AI, a conversational assistant designed to provide responses and complete tasks through voice interaction.